According to Kasvu Open’s Outlook on SME Growth publication, the average recruitment target among Finnish companies has decreased to less than half compared to two years ago. In 2023, companies estimated they would increase their workforce by an average of 36 employees over a three-year period, but in 2025, the corresponding target has fallen to just 14 employees—a significant decline.
“The drop in recruitment goals raises questions about companies’ future plans and their resources for growth,” says Leena Räisänen, Development Director at Kasvu Open. “Since the trend in recruitment needs seems to be downward, it begs the question of whether technology is replacing jobs. Yet, it’s puzzling that the role of technology does not stand out significantly in companies’ responses.”
While recruitment needs are declining in numbers, 57 percent of companies still report that ensuring sufficient staffing is a challenge—2 percent more than last year. Räisänen interprets this as an indication that the challenge lies not in the number of new employees, but in finding the right people.
Skills Shortage Is a Problem
As many as 45 percent of companies say that employee competence presents a challenge. Despite this, investment in developing workforce skills has hit its lowest point in a three-year comparison. Only 17 percent of companies have a plan in place for developing employee skills, which Räisänen finds concerning.
According to the publication, “competence and team” ranks only fourth among development priorities, even though companies consider team competence to be the second most important competitive advantage. The report suggests that, for this reason, the priority placed on skills and team development should be higher.
Risto Murto, CEO of Varma and an expert featured in the publication, reminds us that SMEs often lag behind large corporations and the public sector in the competition for skilled talent. He argues that SMEs need to position themselves as attractive workplaces that offer opportunities for impact, learning, and personal growth.
“The role of the individual is more pronounced in small organizations, which can be a pull factor if communicated correctly. The competition isn’t just about salaries—it’s also about meaningful work and an inclusive culture,” Murto says.
How the Data Was Collected
The information in the Outlook on SME Growth publication is based on data provided by small and medium-sized enterprises from 2021 to 2025. The group of companies varies from year to year. Data was collected electronically through Kasvu Open’s Growth Company Analysis tool—an open-access online resource designed to support business development. The tool’s survey questions assess the current state of a company and its growth plans for the near future.
Image source: Outlook on SME Growth 1/2025, Kasvu Open
